How and where glucocorticoids may exert their effects on cognition has become a topic worthy of investigation. In this study, we have reported on results from verbal memory tests and an afternoon plasma cortisol test in subjects with Major Depression and in subjects with Major Depression with Psychotic Features. Six patients with Major Depression with Psychotic Features, seventeen patients with Major Depression, and fourteen healthy volunteers were tested and reported on. This outpatient study is still in progress and we are still analyzing our data.